Headline figures for hotel chain owner PPHE (PPH) don't tell the whole story, and the sharp decline in profits reflects a €50m (£42m) one-off accounting gain the previous year. In fact, profits before income expenses rose 7 per cent to €61.6m.
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Almost two-thirds of group revenue comes from London hotels, where turnover rose 5.1 per cent to £137m. The performance was especially pleasing on a comparative basis, as the previous year's numbers were boosted by the Olympic Games. Average room rates declined by 1.6 per cent, but this was more than offset by a rise in occupancy levels from 80.2 per cent to 82.4 per cent, which allowed revenue per available room to grow 0.6 per cent to £113.60.